State and territory governments have had early discussions with the Commonwealth on a funding olive branch for the nation’s hospitals, South Australian Premier Jay Weatherill has confirmed.
In March, the ABC reported the Prime Minister had been calling premiers to try and settle a long-running health and education funding dispute before the federal election.
With a poll looming, the states had been primed for a campaign against the Turnbull Government to apply maximum pressure to win back more than $80 billion funding cut in the 2014 budget.
Mr Weatherill has been one of the most vocal critics of the cuts, and split with his party by suggesting an increase to the GST could be a solution to the revenue shortfall.
In the lead-up to the Council of Australian Governments (COAG) meeting in Canberra on Friday, he said a $5 billion deal looked likely to be on the table.
“We haven’t had the details yet, but there is talk that there will be an offer — and there needs to be,” Mr Weatherill told AM.
“I’ve had a preliminary call, but the detail is apparently going to emerge during the course of the week.
“It will be a $5 billion bandaid in what we estimate to be a $57 billion problem.”
The prospect of a deal will not restore all the funding cut in Joe Hockey’s 2014 budget, but it is likely to buy the Coalition time as the nation prepares for a poll.
I just want to see the money: Weatherill
It comes as the SA Government released modelling showing the funding cuts would put extra pressure on the state’s already overcrowded public hospital system and lead to more than 50,000 patients not receiving adequate treatment.
“Survival is a wonderful thing, it concentrates the mind — especially in the lead-up to an election,” Mr Weatherill said.
“[The funding cuts are] the unfinished business of the Abbott Government, and we do require a response at the COAG meeting on Friday.
“I understand what they’re proposing is an interim agreement, and there would be further discussions.
“Given that we’re in the shadows of a federal election, it seems likely that that’s all that’s capable of being achieved.”
Reports suggest the deal would be tied to the states and territories getting a slice of income tax in the future.
“I certainly proposed that states get a share of income tax, that gives us a rate of revenue growth which more approximates the sort of rate of growth we’re seeing in healthcare,” Mr Weatherill said.
“But we’re also going to have to be honest with ourselves about the fact we’re not collecting enough revenue in this nation.”
The SA leader said it was irrelevant whether the deal would cause further tension between Malcolm Turnbull and his Treasurer, Scott Morrison.
“I don’t care whether they’re happy or sad about it, I just want to see the money,” Mr Weatherill said.
Budget to reveal education funding plan
Vocational Education Minister Scott Ryan has hinted that the Federal Government will make education funding announcements in the budget.
The Federal Government’s funding battle with the states has been fought on both health and education.
Senator Ryan said the Coalition would have more to say in May when it hands down the budget.
“With respect to education, there are demands on the system and in my previous roles I’ve worked with issues like students with disabilities and the Government will have something to say about the ongoing funding of schools in the budget,” he said.